(e6.5)

Carey Company had sales in 2019 of $1,766,800 on 63,100 units. Variable costs totaled $1,009,600, and fixed costs totaled $499,000 A new raw material is available that will decrease the variable costs per unit by 20% or $3.20 However, to process the new raw material med operating costs will increase by $98.000 Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. CAREY COMPANY CVP Income Statement Total Per Unit (b) Prepare a projected CVP income statement for 2020, assuming that changes are made as described.(Round per unit cost to 2 decimal places, eg. 5.25 and all other answers to O decimal places, eg. 1,225.) CAREY COMPANY CVP Income Statement Total Per Unit